There are two Primary tests or determining insolvency:-1 The...

There are two Primary tests or determining insolvency:-
1 The cash flow test; and
2 The balance sheet test

Cash Flow test
An individual or company is regarded as insolvent if they are unable to pay debts when they fall due. (Is Mr Whippy getting ready to ring the bell on Oct 30???)

Balance Sheet Test
An individual or company is regarded as insolvent if total liabilities outweigh the value of assets.
It is accepted in Australia that the appropriate test is the cash flow test.

Balance sheet test? BBI passes.
Cash flow test? BBI fails the solvency test on Oct 30 if the banks don't extend the $200M due and payable. As soon as BBI directors are formally told by the banks that they are not extending credit beyond Oct 30, the Directors have no choice but to announce VA (Voluntary Administration) at which time the stock will go into suspension.

The saving grace could be a deal with Mr Cornerstone. What price will that come at?